COMPARATIVE ADVANTAGE AND COMPETITIVENESS OF PEA CROP IN KHYBER PAKHTUNKHWA

This study was conducted to analyze the comparative advantage and competitiveness of pea crop and its implications for resource allocation amongst the winter vegetable crops in Malakand valley. Policy distortion and agricultural protection was also determined by the study. The data was collected from respondents on cost of production and revenue generated of pea crop over the year 2008-09.Two important districts contributing towards pea production (Swat and Malakand) were selected as the sample area. The crop budgets were prepared initially in financial terms and economic prices were utilized to evaluate the comparative advantage and competitiveness of the potato crop. The Policy Analysis Matrix (PAM) was employed as the analytical framework. The policy distortions were measured through Nominal Protection Coefficient (NPC) and Effective Protection Coefficient (EPC). The comparative advantage was measured through Domestic Resource Cost ratio (DRC). Keeping in view the importance of pea in the food diet and rural economy, the analysis was conducted in import and export parity prices. The analysis results showed that at import parity price, Khyber Pakhtunkhwa has a comparative advantage in the production of pea only as an import substitution crop. At export parity price, Khyber Pakhtunkhwa is not competitive in the world pea market and has no comparative advantage in pea production.Furthermore; the analysis further confirmed the position of the crop as the second most efficient winter vegetable crop studied in Khyber Pakhtunkhwa province.